Federal Reserve Chair Jerome Powell said that there is a criminal investigation into the expensive renovation of the Fed’s headquarters. He also said that President Trump is putting political pressure on the Fed to lower interest rates.
The investigation, which is centered on the $2.5 billion renovation of the Eccles Building, was started by the U.S. Attorney’s Office in Washington, D.C. The accusations are based on Powell possibly lying to Congress about the costs of the project. They started with a 2025 referral from Rep. Anna Paulina Luna, who said Powell committed perjury over a $600 million overrun. Investigators are looking into strange spending patterns in the long-term project.
Powell said he wouldn’t give in to threats, saying that the investigation was a way to get back at him for not giving in to Trump’s demands for faster rate cuts. This is a new chapter in their ongoing fight, with Trump publicly criticizing Powell.
The problem started when Powell downplayed the costs of renovations in testimony to Congress. Earlier discussions on Reddit made claims of DOJ referral for perjury stronger, which led to partisan arguments. The Fed is under a lot of scrutiny right now, and markets are keeping a close eye on it.
